The Institute of Risk Management has published a Guidance Paper on Risk Appetite and Tolerance. The Paper aims, among other things, to offer guidance to directors (and those responsible for advising boards) on compliance with the provision contained in the UK Corporate Governance Code that ‘the board is responsible for determining the nature and extent of the significant risks it is willing to take in achieving its strategic objectives’. The Guidance, which has been endorsed by the Institute of Chartered Secretaries and Administrators, offers practical advice on steps that can be taken to meet this responsibility.

Institute of Risk Management: Risk Appetite & Tolerance Guidance Paper available at: http://www.theirm.org/publications/documents/IRMRiskAppetiteFullweb.pdf